Although AI and automation are perceived as a long-run threat to the demand for space, it should also support high-value human roles, and help drive productivity.ET Bureau | September 28, 2017, 08:10 IST

PUNE: A recent study conducted by Colliers Research on the impact of artificial intelligence (AI) on the property market in India found that:

· Technology, media and creative industries are likely to become key sources of demand for new space.· Boundaries will blur between different segments of the property market and there will be an increasing shift towards mixed-use buildings.· Both offices and industrial units are likely to become smaller, with industrial units moving closer to sources of demand.· Demand for dynamically managed logistics warehouses will strengthen further.· Internet of Things (IoT) will transform buildings and building management.· Urbanisation will accelerate, as heavy manufacturing and agricultural jobs are replaced.· Investment capital will migrate towards established sources of human talent, especially university cities.

The advent of AI is expected to trigger an increase in urbanisation due to the replacement of heavy manufacturing and agricultural jobs. Likewise, migration of investment capital is likely to move towards established sources of human talent in upcoming years. Trends such as drones, 3D printers, location analytics, virtual reality tools, Building Management System (BMS), etc. in construction and real estate activities should shape the future of real estate industry. AI is also expected to complement human roles, however will not replace them altogether.

"Although automation seems to be a threat for future office demand, the healthy market scenario at present indicates that the influence of AI will not be clearly visible in short-to-medium term. However, to strategise the long-term plans, companies should start preparing themselves for a world of automation from now. Flexible and intelligent office spaces providing a shared environment within buildings where automated systems communicate seamlessly will be the ideal workspace for the Gen Y and Gen Z workforce in the years to come," said Joe Verghese, Managing Director, Colliers International India.

The research also found that recent innovations in technology comprising AI, digitisation, big data, virtual reality are influencing the way we are working in our offices and will continue to do so in future as well. Demand for new spaces is to be driven by technology companies, media and creative industries. Both offices and industrial units are likely to become smaller, with industrial units shifting closer to sources of demand.

Ritesh Sachdev, Senior Executive Director, Occupier Services at Colliers International India, said, "Given the ever changing economic and business environment, it is imperative for organisations to constantly look at more efficient or smarter ways of doing business; constantly review existing processes and look at reducing turn-around and response time. Firms also need to be viewed as ‘in tune with the times’, ‘future ready’ and ‘next generation, technology friendly’ to attract talent and high-tech enterprise clients" added Sachdev.

Although AI and automation are perceived as a long-run threat to the demand for space, it should also support high-value human roles, and help drive productivity. Hence, futuristic companies should embrace AI quickly and invest substantially in increasing the workforce skills and prepare their human resources for higher-value core roles.

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